ADPD – the Green Party has warned that rental rates are continuously on the rise, and this is a heavy burden on many. It added that this is confirmed by a study published this week by Solidarjetà, the renters’ association.

ADPD Chairperson Sandra Gauci, and party official and spokesperson Mina Jack Tolu, said that “workers on a low income are also excluded from the property market. “This is the negative impact of the country’s economic development.”

They noted that many people have no other alternative but to rent – there are those who do not qualify for a bank loan to purchase their own home, whilst others find themselves in financial difficulties after a separation or divorce.

“The current economic development is having a strong social cruel impact, and this cannot be ignored anymore. Many residential homes, now more than ever, are being used as tourist accommodation. This is having consequences on residential communities, with the result that their quality of life is deteriorating,” the Party said.

The spokespersons stressed that at the same time, the lack of rentals for residential purposes is driving the rental rates up. “We must keep in mind that much of the current economic growth is dependent on a substantial population increase. This has increased the demand for rentals, whilst the pressure on the sewage system and other infrastructure has increased excessively, such as traffic on our roads. This situation has been brought about by the government, which is now in a state of panic to find solutions.”

They insisted that short-lets, or what is frequently called Airbnb’s, have led to a lack of residential housing and this is the driving force behind the substantial increases in rental rates. The Housing Authority reports that the costs for accommodation should not be more than 25% of one’s income.

ADPD said, in spite of this, it is clear that less than 25% of rentals are affordable, whilst around 40% of rentals cost around 25%-30% of monthly income. Forty per cent of rentals are a heavy financial burden. It is worrying to see that such speculation in the residential accommodation sector is leading to exorbitant rental rates with the consequence that people are ending up homeless. These challenges are especially serious if one narrowly fails to qualify for the Housing Benefit Scheme, rental rates increase or if the landlord wants to terminate the rental.

“The heavy influx of foreign workers in such a short span of time has created a high demand for rental accommodation. There are those who gave up their summer home to rent it out and we have also seen abusive practices where we see people squeezed into a small apartment, packed like a tin of sardines. It is true that the government has issued guidelines to curb abuse. But do we hear about enforcement? Rampant, unchecked abusive practices are leading to more prohibitive rental rates,” the spokespersons said.

They warned that “there is absolutely no much control over rental rates or how they should be established. Prices are randomly set and this is one major problem. Although the government has taken the initiative to control this problem, the abuse has not stopped.”

The Party stated that “the law of the jungle dominates, and there is no law which outlines the criteria for setting rent, such as property size, energy efficiency and access to amenities. The government appears reluctant to take serious steps to address the situation. Landlords, who are primarily Maltese, have benefitted immensely from the situation. It seems that the status quo will not be touched as this will translate into a loss of votes.”

ADPD concluded by saying that “the rental market has exploded and the greed for money is great, but the right to adequate accommodation at reasonable rates is sacrosanct. There is the urgent need for regulation that protects the rights of the renter. This is what ADPD-The Green Party believes, and this is something that we shall keep on insisting on.”

Photo: ADPD

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